The mobs interest in the banking system was undoubtedly triggered by their laundering problems. Needing to move huge profits from gambling and narcotics and other heavy cash flow interests. With Mafia financed banks in Miami the laundering requirement was fulfilled as was the need for a stolen securities repository against which good money loans could be written.

Many crime families engage in bank looting on a straight and simple basis. Operating through front men or shell corporations, Mafiosi buy up enough shares in a bank to gain effective control and either install their own management or make existing management entirely compliant to their own wishes. Loans are then made to Mafia applicants and businesses. these loans are never repaid. If the banks have insufficient insurance and supervision then the depositors take the loss. (and you thought your Christmas club account was safe.FSLIC my Ass!)

Another even more sophisticated manipulation involves keeping the bank healthy and viable ,and using it to furnish phony statements of worth for mob figures who, in turn, are able to obtain loans from other banks. By scattering loans across the country it may be some time before the original bank comes under suspicion.

The mob has also found that a captive bank is an excellent intel resource, since a bank can get financial information from other banks regarding any individual or company in the country. Banks share information with each other on a level that financial reporting firms are unable to match. With such intel, the Mob can zero in on logical victims. They can even check up on individuals that are cooperating with them to make sure that they are not enjoying more revenue than the criminals want them to have.

Bustout scams:

Bankruptcies are used by honest businessmen to protect them from debts however the Mob has different uses for these laws. According to one estimate from the Justice dept., syndicates pull of at least 250 such scams annually. netting anywhere from a quarter of million up to several million. it works like this:

1) the mob takes over a reputable company with a good credit history or creates a new company. To do the latter, the mob uses a front man who has no criminal record

2) the mob provides "Nut money" which is put into the bank to establish credit.;

3) the firm orders supplies that are quickly paid for in full.

4) as orders are increased payments start coming through a bit slower. It is still very difficult for a supplier to turn its back on a company account that is increasing. When the orders become king sized, greed or hunger on the part of the supplier tends to overwhelm caution. They generally offer credit.

5) The mob concentrates on businesses with goods that can be rapidly turned over and shipped off to another company. often under control of the mob as well. liquor supplies often are delivered to the front door of a mob restaurant and right out the back door.

6) The mob pulls its nut money out of the bank and the business is shut down, all creditors will find is a bankrupt shell of a company and absolutely no assets.

Not long ago a conglomerate stuck with a publishing division some 3 million in debt was approached by a front man representing the new jersey mob. offering to take over the company for 10,000 and the assumption of 3 million in debt. The parent firm jumped at the offer. It turns out that the 10,000 was paid in the form of 2 rubber checks, but that very week the mob got a hold of the publishing houses cash flow of 90,000 dollars and made the checks good. The Publishing firms creditors were told that the new management would make good on the old debts over a period of 18 months but that they would have to continue to service the companies printing needs and that current bills would be paid as they came in. The creditors agreed and soon the syndicate had run up an additional couple of million in debts. The old bills were not paid nor were the new ones. In the meantime,money continued to be siphoned out of the cash flow pipeline. Expensive typesetting machines and electronic typewriters were ordered and quickly disappeared. In the end every one dealing with the firm was stuck.

Sometimes the mob gets the business in debt itself through loansharking and then installs it's own man as the president of the company to "watchdog their money". the business is immediately busted out and then returned to the control of the former owners with the advice that they immediately file bankruptcy.

Mob Guarantee:

A situation that Mob folks try to propagate entails making a "guarantee" to disparate criminal elements that a deal will be lived up to by all the participants. If there is any backsliding the boss will invoke godfather-like and fatal vengeance. Naturally, the mob boss gets a cut from each side. This guarantee has about as much weight as the tooth fairy. Mafia history has shown that as like as not, one side or the other will buy off the mob boss and then screw the other partner(s) The yakuza might be a different story.

The Jukebox Racket:

The juke box racket is legitimate but it has long been attractive to organized crime. the mob is especially lured to enterprises where the skim make it possible to siphon off profits before any taxes are paid this makes nightclubs,bars,restaurants,and jukeboxes. The racket is simple and unvarying. The mobsters move in on the juke box operators associations as well as the local unions whose members service the jukes. the territories are sliced up among mob operators and full monopolies are established. no one is allowed to run an independent operation and rival jukes are sabotaged. Restaurant and bar owners are forced to take jukes or be physically attacked or maybe have their place sabotaged. if the owner resists, the Juke union will set up a picket line until they are out of business. they can do the same with pinball and cigarette vending.

Restaurant Rackets:

Restaurants are particularly attractive to and vulnerable to Mob Coercion. Eateries are a favorite shill for money laundering because often times it's so very hard to keep up with income and outgo. Skimming from a restaurants take is laughably easy and very difficult for the IRS or the Treasury department to track. a Mob controlled restaurant is the best customer of other mob controlled legitimate businesses. (cartage and hauling,laundry services,liquor sales, etc...I've even heard of a parsley racket.) The operation can always be "busted out" if quick cash is needed (4 out of 5 restaurants go out of business in their first year so this is not all unusual.) it might also give be a good place for some young goombah to be the boss and act like a big shot without getting into the hair of older Mafiosi. Restaurants can also be a good place to set up some punk to run drugs off the back dock. ( a restaurant I once worked got heavily investigated for dealing cocaine.)

Don't want to knuckle under to mob domination? Well. Kitchens are prone to fire.

Car detailing: ( Sent in by a young fella who i'll refer to as Vinnie the Squeegie)

This racket is interesting and can be big money if it isnt already in use. A person sets up his car detailing company. The company quickly runs out all other car detailing company through unions or the usual mob way.Once the monopoly is established, He then goes to business's and offers to do contract work on a regular basis to detail cars. Used Car dealerships make a great place. He then either works out a deal. If the dealership refuses he then sends a couple of thugs to give the cars reason to be detailed again( broken windows, cars with dog shit/human feces, etc). The Dealership will then more than likely call the company for a job. This goes on untill the dealership eventuallys signs a contract for the car detailing business at a discount rate. The dealership whos cars are always being busted up will eventually agree seeing that it will be money saved through a contract. Once the contract is struck the cars stop being vadalized and thus very little money is needed to put back into detailing the cars. The startup costs of a car detailing company is very minor and can be done very easily with maybe five thousand dollars or less. If the dealership gets along well it opens up possibiltys for great smuggling operations for the mob. Car dealerships are great targets especially used car dealerships. As well as the buy and sell of cars is great ways for the mob to launder money.

The same racket can be done for window cleaning business's. Or wall cleaning business etc. Any business is approached and offered to have its windows cleaned for a one time job, or else to have a contract signed. They say no the windows are busted. Or spray painted on the walls.

The business is reluctant eventually signs a deal and thus the same racket is made.

The car dealershipis generally a more lucrative racket just because the auto industry is big money.